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What is a TDS Return?

A TDS Return is a mandatory statement filed quarterly by a deductor (payer) with the TIncome TaxT Department. It reports the TTax Deducted at Source T(TDS) on specified payments and includes:.

  • TDS amount deducted and deposited
  • PAN details of deductees (employees, vendors, etc.)
  • Nature and amount of payments
  • Challan and BSR code details for deposited TDS

TDS Returns ensure that the deducted tax is properly credited to the respective deductees and reflected in their Form 26AS

Types of TDS Returns & Due Dates for FY 2024–25

Form Purpose Applicable For Quarter Due Date
24Q TDS on Salary Employers Q1: Apr–Jun 31st July
Q2: Jul–Sep 31st October
Q3: Oct–Dec 31st January
Q4: Jan–Mar 31st May
26Q TDS on Non-Salary Payments (Interest, Professional Fees, Rent, Contractors, etc.) Businesses, Professionals Quarterly Same as above
27Q TDS on Payments to Non-Residents NRI Payments Quarterly Same as above
27EQ TCS (Tax Collected at Source) Returns Sellers Collecting TCS Quarterly Same as above

Details Required to File TDS Returns

To prepare a valid and accurate TDS Return, the following information is essential:

  • TAN of the deductor (Tax Deduction Account Number)
  • PAN of deductees (mandatory to avoid higher TDS rates)
  • Amount paid or credited
  • TDS deducted and deposited with the government
  • Challan details (BSR code, Challan Serial Number, Date of Deposit)
  • Nature of payment (salary, interest, rent, commission, etc.)
  • Category of deductee (individual, firm, company, etc.)

Step-by-Step Process to File a TDS Return

At Vetri Audit Services, we ensure complete and timely filing through the following structured process:

1

Collect Data:

Collate payment, deduction, and challan details for the quarter.

2

Prepare Returns:

Use NSDL or Income Tax Utility to prepare the return in the prescribed format.

3

Validate Files:

Validate the return file in .txt format using FVU (File Validation Utility).

4

Upload Return:

File the return through the TIN NSDL or TRACES portal.

5

Verify Digitally:

Submit with Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

5

Acknowledgment:

Download and retain the acknowledgment (Provisional Receipt).

Key Compliance Points to Remember

  • Always quote the correct PAN the deductees to avoid TDS at 20% (higher rate).
  • File TDS returns quarterly and within the due dates to avoid penalties.
  • TDS deducted and deposited must match with entries in Form 26AS of deductees.
  • File correction returns in case of errors (e.g., PAN, challan mismatch).
  • Issue TDS certificates (Form 16/16A) on time.

Penalties & Interest for Non-Compliance

Nature of Default Section Penalty / Interest
Late filing of TDS Return 234E ₹200/day (Max: TDS amount)
Non-filing of TDS Return 271H ₹10,000 to ₹1,00,000
Non-deduction / Late deduction 201 Interest @1% per month
Non-payment / Late payment 201A Interest @1.5% per month
Delay in issuing TDS certificates 272A(2)(g) ₹100/day (Max: ₹5,0)

Timely filing and compliance can help avoid these costly penalties.

TDS Certificates Issuance

The deductor must issue TDS certificates within 15 days from the due date of filing the return:

  • Form 16: For TDS on salary (issued annually)
  • Form 16A: For non-salary payments like professional fees, rent, commission, etc. (issued quarterly)

TDS Certificates Issuance

  • Expert handling of PAN errors, challan mismatches, and return corrections
  • Timely filing reminders and updates
  • Support for DSC, e-filing, and compliance reporting
  • Accurate reconciliation with 26AS and TDS ledgers
  • End-to-end service from deduction to certificate issuance

Need Help with Your TDS Compliance?

Let our expert team at Vetri Audit Services Private Limited manage your TDS filings accurately and on time.

Contact us today for a consultation!

9176455554

OR vetriauditor@gmail.com
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